$50M AAVE Trade Goes Awry as Trader Ignores Slippage Warnings

A cryptocurrency trader attempting to purchase AAVE tokens using roughly $50 million in USDT suffered a massive loss after executing a high-slippage transaction.

The trade, executed through the Aave interface and routed via CoW DAO, triggered warnings before completion due to the unusually large order size.

Aave founder Stani Kulechov stated that the trading interface displayed clear alerts about the extreme price impact and required the user to explicitly acknowledge the risk before proceeding.

The trader confirmed the transaction on a mobile device and completed the swap, accepting the high slippage conditions, which resulted in the loss of tens of millions of dollars in stablecoins.